Volume discounts

Volume discounts automatically reduce pricing based on order quantity, applying tiered percentage discounts above defined thresholds. They reward larger orders and incentivize bulk purchasing.

Why volume discounts matter

• Incentivize bulk orders: automatically reduce prices as quantity increases
• Tiered flexibility: define multiple threshold levels with increasing discounts
• Targeted application: scope discounts by customer group, product line, category, and attributes

Core concepts

Structure

A volume discount consists of:

• Tiers: one or more quantity thresholds, each with a discount percentage. For example: 100+ units = 5% off, 500+ units = 10% off, 1000+ units = 15% off
• Filters: optional scoping that controls which products and customers qualify:
  • Customer groups: linked to pricing groups via group membership
  • Product lines: which product lines the discount applies to
  • Categories: which item categories qualify
  • Attributes: which product attributes must match
  • Acceptable units: which units of measure qualify for the quantity threshold

AND logic

All specified filters must match for the discount to apply. If a volume discount specifies a product line, categories, and attributes, the product must match all three to qualify.

Applied through groups

Volume discounts are linked to customer pricing groups. A customer qualifies for a volume discount through their pricing group membership: not directly.

Tier behavior

When a customer qualifies, all qualifying tiers are applied multiplicatively. Each tier whose threshold is met contributes its discount, and the discounts compound. For example, if the 100+ tier (5%) and 500+ tier (10%) both qualify, the total multiplier is (1 - 0.05) × (1 - 0.10) = 0.855, resulting in a 14.5% total discount.

Example

A volume discount named "Bulk Sock Pricing" might have:

If a customer in the linked pricing group orders 750 units of a qualifying product, both the 100+ and 500+ tiers qualify. The total discount is calculated multiplicatively: (1 - 0.05) × (1 - 0.10) = 0.855, giving a 14.5% total discount.

Pricing precedence

Volume discounts apply on top of the resolved unit price:

1. Base product price
2. Volume discount: percentage reduction based on the qualifying tier
3. Discount codes - additional order-level reduction

Where volume discounts are used

• Customer pricing groups: discounts are linked to groups; customers qualify via group membership
• Sales order: applied automatically when order line quantities meet tier thresholds

Next: Discount codes